Actelis Networks (ASNS) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $958,000, up 33% year-over-year, driven by expanded sales in North America, EMEA, and Asia-Pacific, with momentum in U.S. federal, telecom, and ITS markets.

• Net loss increased to $2.5 million from $1.9 million year-over-year, mainly due to higher costs and a $625,000 commitment fee related to an equity line of credit.

• The company was delisted from Nasdaq in April 2026 and now trades on the OTCQB Venture Market; business operations remain unaffected while relisting options are pursued.

• A binding term sheet was signed to acquire Exaware Routing Ltd. in an all-stock transaction, targeting entry into AI-driven data center networking, pending definitive agreement.

Financial highlights

• Gross profit for Q1 2026 was $235,000 (25% margin), down from $251,000 (35% margin) in Q1 2025, impacted by a low-margin US deal and higher indirect costs.

• Operating loss was $1.86 million, slightly higher than $1.81 million in Q1 2025.

• Adjusted EBITDA for Q1 2026 was $(1.79) million, with a margin of -186.95%.

• Cash, cash equivalents, and restricted cash totaled $7.5 million as of March 31, 2026, up from $4.4 million at year-end 2025, aided by $6.9 million in ATM proceeds.

• Negative cash flow from operations was $1.9 million for Q1 2026, improved from $2.2 million in Q1 2025.

Outlook and guidance

• Management expresses substantial doubt about the ability to continue as a going concern due to insufficient resources to meet obligations for at least one year.

• Plans to fund operations through cash on hand, operational cash flows, and additional equity or debt financing.

• Intends to apply for uplisting back to Nasdaq, but there is no assurance of success.

• Management expects gross margin to improve as volume increases and software mix rises, with product pricing increases and cost reduction measures anticipated to yield benefits later in 2026.